TORONTO, June 14, 2012 /CNW/ - Advocis, The Financial Advisors
Association of Canada, expressed its disappointment today with the
Manitoba government's decision to apply a seven per cent Retail Sales
Tax (RST) on individual critical illness insurance (CI), disability
insurance (DI) and corporate-owned insurance coverage for Manitobans.
"The move today by the Manitoba government will make critical illness
and disability insurance more costly for consumers. While it will
generate some short-term revenue, it will lead to more government
expenditure on health care in the long term," said Greg Pollock,
president and CEO of Advocis.
Governments are increasingly downloading burdens onto families and small
businesses. Consumers purchase CI and DI coverage, both individually
and through employment-based group plans, to protect themselves
financially from risks that governments increasingly do not cover.
Adding premium taxes to such coverage makes it more difficult for
consumers and employers to fill the void.
"Without taking the appropriate time to consult with industry and
policy-holders — average Manitoba families and small businesses — the
government is moving ahead with little regard for the impact this
budget bill will have," Pollock added.
In May, Advocis joined other industry stakeholders in engaging the
Government of Manitoba following the 2012 budget announcement that the
seven per cent RST would be imposed on insurance premiums. The
government initially announced that the tax would apply to property and
casualty, group life, trip cancellation, baggage and land titles
insurance, and that it would not apply to health and disability
Following the expansion of the RST scope to include CI, DI and
corporate-owned insurance, Advocis urged Manitoba's Minister of Finance
to remove these additional types of insurance from the budget
legislation and to allow appropriate consultation and consideration of
the impact such measures will have on Manitobans.
Advocis, The Financial Advisors Association of Canada, is the
association of choice for financial advisors and planners. With more
than 11,000 members across the country, Advocis is the definitive voice
of the profession, advocating for professionalism and consumer
protection. Professional financial advisors and planners are critical
to the economy, helping consumers make sound financial decisions that
ultimately lead to greater financial stability and independence.
Advocis works with decision-makers and the public, stressing the value
of financial advice and striving for an environment in which all
Canadians have access to the advice they need.
SOURCE Advocis, The Financial Advisors Association of Canada
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